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10 Comments on GOERGE BUSH'S PLAN TO BAIL OUT HOME LOAN PROGRAMS, By Dallas Realtor Bill Cherry
I don't see this plan as a bail out with all the requirements, only the ones that were damaged by the lending fallout will see a reward and its really not a reward per say,.... its helping them keep their homes --- if they can prove that they can afford them. Nothing wrong with that plan.
If someone was able to keep the home and payments up, that is their blessing and I for one will not be mad at another for being able to keep their. I am happy. I just wish that the plan would include the people that actually loss their jobs and could not afford to pay. my 02 cents
Rondel and Rosemary,
I agree with both of you. Helping them keep their homes is good for them and us. It will allow an orderly disposition of the problem and for those who need to sell their homes because they can't even afford them at the lower rate.
And it also helps prop up the value of our homes which otherwise would be wrecked by an enormous number of foreclosures and those utterly stupid short sales -- whomever dreamed up that idea needs to be banished from the face of the earth.
What I really don't like is the sub-prime lenders --- those with the portfolios in Germany and so forth --- cannot and will not be heavily penalized for their predatory lending.
Right, Miss Joan, and a lot of it hangs right over the transactions of many of our fellow agents.
"Of course they can't afford it, but I need the commission, and I'll get to sell it again when they're going down the tube," they reason.
Bill ...I am constantly amazed at the power of money...greed has become the #1 American pastime!
Joan I agree
no down payment + nor reserves + all closing costs rolled in.
hmm... let's stick this guy in an ARM and see what happens.....
Although I agree that lenders were irresponsible, I also feel that the buyers greedily took the ARM for a little better pmt.
They bought too much house!!!!!!
Tom,
I spent about an hour on the phone last week with a young man who had invested his savings...$40,000 in a new home. The new home was in an outskirts-of-Dallas subdivision where almost every other homeowner had bought with the loan programs you described.
Now those buyers couldn't afford the payments, and a huge percentage were going into foreclosure. Meanwhile, his $40,000 equity had vanished as a result of that market, and he was in the hole at least another $25,000.
Since then, his wife had had a baby that had some sort of deformity. She had to stay home with the child, so they lost that income. Now they couldn't afford the payments and they had no way to sell and move to a smaller house.
I couldn't help it. He and I cried together.
Real estate agents and subprime lenders and those who pushed many of the ARM products are all to blame...ever last one of us.
George, my graduate education is in banking, primarily money supplies and credit. The very first thing we learned and were tested on over and over was analyzing credit.
During that period I was about 22 and a real estate loan man in a commercial bank in St. Louis bank. We did out own credit checking and analysis, and we knew we'd better be able to defend our conclusions.
Before I made a loan, I would review the credit officer's work in detail, and if I supported his conclusion I made the loan. If I didn't, that loan didn't get made in that bank. The delinquency ratio of my portfolio was always less than 2%, and I don't recall ever having a foreclosure, although I probably did.
I'm not smart at all, and that's why I'm pointing this out.
If credit wasn't made to fit immaterial models as they are today, we wouldn't be in this mess, and a lot of people's lives wouldn't have been turned upside down and their blackboard of success full of chalk marks on the wrong side.
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